Aberdeen Researches Real Estate Management
August 23, 2007 -- Business locations play a critical role in influencing - if not defining - an organization, according to a recent survey conducted by Aberdeen Group, a Harte-Hanks Company (NYSE:HHS).
The study, sponsored in part by Accruent, a provider of Real Estate Performance Management (RPM) solutions, demonstrates that only by leveraging technology to automate real estate and facilities management-related business processes can leading organizations achieve visibility in this key area of operational success.
In July 2007, Aberdeen Group released the benchmark report, "Real Estate and Facilities Lifecycle Management" (REFLM), a survey of corporate real estate, facilities management, finance, and procurement executives from more than 250 enterprises. Among the key findings:
- Large capital investment: Real estate (18%) and facilities management (14%) comprise almost one-third of the average enterprise's non-payroll spend.
- Low level of visibility and control: Nearly 40% of enterprises report poor or no visibility into this significant category of spend and the processes that support it.
- Best-in-class enterprises tap into technology: Top-performing enterprises effectively manage their real estate and facilities commitments by using technologies that address multiple facets of the real estate and facilities lifecycle.
- Leveraging technology results in cost-saving benefits: By investing in technology solutions, best-in-class enterprises gain greater visibility, leading to improved operational efficiency. Specifically, these organizations credit REFLM solutions for delivering a 5% reduction in their total cost of occupancy.
"Real Estate and Facilities Lifecycle Management programs are assuming an increasingly strategic role within the enterprise," said Andrew Bartolini, research director at Aberdeen Group. "Our report shows that significant performance improvement has been achieved by enterprises that drive initiatives to improve visibility into both spend and process. As business leaders recognize the potential bottom-line impact that improved visibility enables, we will see a greater commitment to technology deployment and usage."
"The report finds that real estate and facilities spending are comparable to payroll expenses for many organizations," said Mark Friedman, chief executive officer of Accruent, "and awareness is increasing the benefits that accrue when an enterprise-level management approach is adopted. We are pleased to partner with Aberdeen Group on this landmark study which illustrates the savings market leaders have achieved by addressing this enterprise blind spot."
A complimentary copy of the Aberdeen Group report can be accessed at http://www.accruent.com/news/analystcoverage.php.
About Aberdeen Group, a Harte-Hanks Company
As a Harte-Hanks Company,
About Accruent, Inc.
Founded in 1995, Accruent leads the industry with a new generation of solutions designed to fully leverage real estate assets and decisions as an enterprise competitive advantage. Accruent Real Estate Performance Management (RPM) solutions maximize the impact that real estate properties -- stores, restaurants, local branches, and corporate offices -- have on company performance by driving revenue growth, reducing costs and achieving financial compliance. More than 340 of the world's largest companies, including 20 percent of the Fortune 500 and 40 percent of the Top 100 Retailers use Accruent's solutions. In addition, Accruent couples the broadest and deepest real estate data set and advanced business intelligence to bridge the gap between daily operations and strategy. For more information, please visit www.accruent.com.